Madhusudan Meher of Jharsuguda was arrested while he was trying to use the fake currency at petrol pump in Sunarimunda, a senior police officer said.

The petrol outlet staff handed him over to the cops. “The note is a colour photocopy of an original Rs. 2,000 currency. A case has been registered at the Jharsuguda police station and investigation is underway,” Sub-divisional Police Officer (SDPO) of Jharsuguda, Bijay Nanda said.

Meanwhile in Bolangir district, police seized over Rs. 12 lakh from the house of a recruitment agent of migrant labourers, popularly known as ‘dadan sardar’ on charge of stashing huge amount of cash.

The police raided the house of Khirasagar Bag, a dadan sardar at Tingra village under Saintala police station limits last night and seized Rs. 12,75,900, Bolangir SP Asish Singh said.

SP Singh said though they raided house of Bag on a tip-off about fake notes but the police could not find any. Out of the total amount recovered, Rs. 2,000 notes were also stored which totalled upto Rs. 4.8 lakh, he said.

“The police were investigating as to how Bag could arrange so many Rs. 2,000 notes while people stand in lines to get cash from banks and ATMs,” SP Singh said.

Police suspected that the man was using local people to get demonetised notes exchanged for new the Rs. 2,000 notes in different banks. Bag, however, could not be arrested as he absconded before the raid took place, police said.